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HomeMy WebLinkAbout03.d. Set public hearing for review of Board Member compensation and benefitsCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: February 21, 2013 Subject: SET PUBIC HEARING TO CONDUCT ANNUAL REVIEW OF BOARD MEMBER COMPENSATION AND BENEFITS AND CONSIDER AMENDING DISTRICT CODE SECTION 2.04.030, "COMPENSATION OF BOARD MEMBERS" Submitted By. Initiating Dept /Div.: Elaine R. Boehme Administration Secretary of the District REVIEWED AND RECOMMENDED FOR BOARD ACTION: E. Boehme — Secretary of the District K. Alm C. Swanson Counsel for the District Provisional General Manager ISSUE: Resolution 2012 -018 (ATTACHMENT A) established a formal annual public review of Board Member compensation and benefits to be held during the first quarter of each year, as required by Grand Jury Report No.1104. RECOMMENDATION: Set a public hearing for March 21, 2013 to review Board Member compensation and benefits and consider amending District Code Section 2.04.030, "Compensation of Board Members ". FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: None. BACKGROUND: In April, 2011, Contra Costa Grand Jury Report No. 1104 contained Recommendations #1 and #3 that all Cities and Special Districts conduct an annual public review of compensation and benefits provided to their respective Councils and Boards, and whether changes are warranted. In response to those recommendations, in February, 2012, the Board adopted Resolution 2012 -018, establishing a formal annual public review of Board Member compensation and benefits to be held during the first quarter of each year. Staff has recently conducted a survey of other local agencies, requesting information regarding Board Member meeting stipend, health and dental benefits, pension, deferred compensation (ATTACHMENT B) and other factors in the Grand Jury Recommendation (ATTACHMENT C). This matter will be discussed with the Budget and Finance Committee when it meets on February 19, 2013. N:WDMINSUP\ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPENDWNNUAL REVIEW OF BOARD COMPENSATION\2013 \PP -Set PH re Bd Compensation.doc Page 1 of 2 POSITION PAPER Board Meeting Date: February 21, 2013 Subject: SET PUBIC HEARING TO CONDUCT ANNUAL REVIEW OF BOARD MEMBER COMPENSATION AND BENEFITS AND CONSIDER AMENDING DISTRICT CODE SECTION 2.04.030, "COMPENSATION OF BOARD MEMBERS" The Board will consider whether it wishes to make any changes to its compensation and benefits at the public hearing on March 21, 2013. RECOMMENDED BOARD ACTION: Set the public hearing for March 21, 2013 to review Board Member compensation and benefits and consider amending District Code Section 2.04.030, "Compensation of Board Members ". ATTACHMENT A: Resolution 2012 -018 ATTACHMENT B: Survey of Board Compensation ATTACHMENT C: Recommendations #1 and #3, Grand Jury Report 1104 N:WDMINSUP\ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND\ANNUAL REVIEW OF BOARD COMPENSATION\2013 \PP -Set PH re Bd Compensation.doc ATTACHMENT A RESOLUTION NO. 2012-018 A RESOLUTION ESTABLISHING ANNUAL PUBLIC REVIEW OF BOARD MEMBER COMPENSATION AND BENEFITS WHEREAS, in April 2011, the Contra Costa Grand Jury Report No. 1104 contained recmmendations that all Cities and Special Districts conduct an annual public review of compensation and benefits provided to their respective Councils and Boards, and whether changes are warranted; and WHEREAS, on July 10, 2011, the Board of Directors of Central Contra Costa Sanitary District responded to the Grand Jury's recommendations that it would conduct an annual public review of compensation and benefits provided to Board Members; and WHEREAS, at a public hearing held March 1, 2012, the Board of Directors of Central Contral Costa Sanitary District considered whether to adopt a resolution mandating such annual review of Board Member compensation at a public hearing or in open session of a regular Board meeting. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does resolve as follows: THAT the the Board of Directors of Central Contra Costa Sanitary District shall conduct an annual public review of Board Member compensation and benefits. Such review shall be held during the first quarter of each calendar year at a properly noticed public hearing. PASSED AND ADOPTED this 2nd day of February 2012, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: Hockett, McGill, Menesini, Williams, Nejedly NOES: Members: None ABSTAIN: Members: None Ja A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC , Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Central Contra Costa Sanitary District Resolution No. 2012 -018 Page 2 of 2 Approved as to form: 4�,�4 Kenton L. Alm, Esq. Counsel for the District Board of Directors Compensation and Benefits Survey ATTACHMENT B N: \ADMINSUP \ADMIN \DIST -SEC\ BOARD \COMPENSATION - STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse Directors contribute 6.83% of their District provides iPads salary on a pre- for Directors tax basis and that want District pays for premium for up to Kaiser the District $560.00 per meeting Family. District pays for HealthNet and District pays premium contributes them East Bay Municipal Utility ($1,120 per month and 2 Anthem BC for the Director only and requires for Director and eligible No 37.74% (as of No District No (currently 3). District meetings per month) 15% premium contribution for double and dependents July 2011). contribution For those that family coverage. Directors are use their eligible to retire personal iPads, the at age 54 with minimum of District pays a $50 stipend. five years of service. CaIPERS retirement (for District pays premium for Directors West County Wastewater $265.35 per meeting /6 District pays flat rate of up to $1500 month for family medical, dental $85,000 policy for elected before No District District District meetings per month premium is shared 90% District /10% director. Board Member 7 -1 -94 only). contribution No provides iPads only. (Age reduction District pays 5% to directors of participating schedule applies.) directors' 8% contribution. N: \ADMINSUP \ADMIN \DIST -SEC\ BOARD \COMPENSATION - STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Board of Directors Compensation and Benefits Survey N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse District pays CalPERS contribution $260 per meeting /6 District pays premium for up to two -party District pays premium (Board Member +Distric 6.32% of salary - Oro Loma Sanitary District PERSCare ($2,166.22 per month); all Board for up to family No No No meetings per month Members are enrolled in less- expensive plans coverage -Delta Dental t portion) for District contribution eligible Board members elected before 1995 District pays up to $827 per month for Board Member only; $1628 per District pays for $212.10 per meeting /6 month for Board Member +1; $2002 per month for Family for medical, coverage of $10,000 District Union Sanitary District meetings per month dental, vision; allocated as follows: 100% dental, 100% vision, and for Board Member; No $50 /month No provides iPads balance to medical plans $5,000 for spouse to directors and dependents District pays up to $1,281.21 for Board $205.07 per meeting /6 Member & family. Coverage is through PERS. No District Mt. View Sanitary District (PERS requires participation in a District - No No No No No meetings per month contribution ponsored retirement plan. See Deferred Comp) Agency pays premium Inland Empire Utilities Agency $195 per meeting /10 Agency pays premium for up to family for up to family Agency pays No District (2012 information) meetings per month coverage for the CalPERS health plan of their coverage for Delta premium for No contribution No Yes choice Dental PPO or Western $30,000 policy Dental District pays premium for up to family District pays premium District pays Central Contra Costa Sanitary $185 per meeting /6 coverage for Kaiser, Health Net HMO, or for up to family premium for No District District meetings per month Health Net PPO ** Cafeteria Plan offered in coverage for Delta $50,000/$1,500 No contribution No No lieu of medical coverage Dental PPO policy N: \ADMINSUP \ADMIN \DIST- SEC \BOARD \COMPENSATION- STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Board of Directors Compensation and Benefits Survey N: \ADMINSUP \ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse District pays premium for up to Director & District pays premium $176.34 per meeting /6 Spouse, 1 participating member, 3/1/12 Board for up to family No District Castro Valley Sanitary District meetings per month member to share 50% cost of premium coverage for Delta No No contribution No No increase from 2012 to 2011 Dental PPO $174 per meeting /6 District pays No District $20 allowance Napa Sanitation District meetings per month No No premium for No contribution N/A for iPad fees $28,000 policy $170 per meeting /approx. 20 meetings per year (1 District pays premium for CalPERS Medical District pays premium District pays Delta Diablo Sanitation for up to family premium for No District District Board meeting per (HMO or PPO) up to the greater of either the coverage; Self- $125,000/$2,000 No contribution No No month + about 8 Blue Shield or Kaiser HMO family rate insured Plan policy Committee meetings per year) Existing Board members are frozen at 2012 rate of District paid premium for up to Kaiser Family; board member is responsible for any $170 per meeting /6 increase above that rate going forward for medical, dental and vision. Optional, if chosen to Ironhouse Sanitary District meetings per month New Board members are covered for self only at Kaiser rate. Any No No enroll, cost to District No No $10 /mo. increase above the rate of medical coverage, dental or vision during the first year of service or family coverage shall be paid by the Director. N: \ADMINSUP \ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Board of Directors Compensation and Benefits Survey ** Directors hired after 6/30/09 pay difference between highest- costing HMO to PPO if PPO selected 4 N: \ADMINSUP \ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey Medical Dental Life Insurance Stipend /Max. Cell Computers/ Agency Board Member/ Board Member/ Pension Deferred Comp Compensable Mtgs Board Member/ Spouse /Family Phone iPads Spouse /Family Spouse The District matches District pays for premium up to $591 (Board District pays premium Board Member Dublin San Ramon Services $146 per meeting /4 Member only), $1,181 (Member + 1 for up to Board District pays for up contributions to 457 District meetings per month Dependent), $1,535 (Member + 2 Member and eligible to $50,000 basic life No plan by 25 %, up to No No Dependents); rates set by resolution annually dependents insurance $10 per calendar month $143.59 per meeting /6 meetings per month. No District pays health expense reimbursement automatic increase, but of $5,628 (2013 #s) (increased every January see medical health No District Fairfield- Suisun Sewer District can be increased up to by CPI -W for SF- Oakland Metropolitan area 12 expense No No contribution No No reimbursement 5% in January of any months ending in October of each year) year by Board action. per meeting/10 District pays premium for up to family District pays premium District pays for No District Contra Costa Water District h meetings per month mee coverage for Kaiser, Health Net HMO, or for Delta Dental for $10,000 policy No contribution No No Anthem Blue Cross PPO family $100 per meeting per month, except for the Vallejo Sanitation and Flood appointed County Board No District Control District of Supervisor who No No No No contribution No No receives $100 per meeting per month ** Directors hired after 6/30/09 pay difference between highest- costing HMO to PPO if PPO selected 4 N: \ADMINSUP \ADMIN \DIST- SEC\ BOARD \COMPENSATION- STIPEND \Surveys of Compensation and Benefits \2013 \Central San 2013 BOD Compensation and Benefits Survey CENTRAL CONTRA COSTA SANITARY DISTRICT ATTACHMENT C Status of Recent Contra Costa County Grand Jury Requests /Responses Report No. and To' is �; April 2011: CCC �� / Res Qt v' / ' 7/10/11: f Staff adopted Resolution No. 1104 Recommendation # 1: All cities This recommendation will be implemented. The District will 2012 -018 establishing an Elected Board and special districts should conduct an annual public review of compensation and annual review of Board Membership conduct an annual public review of benefits provided to Board members. compensation in the first (Compensation) compensation provided to their quarter of each year, in respective elected Councils and open session. Boards. This review should include such items as salary, meeting fees, health care insurance costs, pension, deferred compensation, life insurance premiums, cell phone usage, and internet connections. The public review should address whether or not changes in compensation are warranted. Recommendation # 3: These 7/10/11: The appropriateness of special districts, as part of the This recommendation will be implemented. The District will Board compensation will annual review in Recommendation consider whether it would be appropriate to implement a be part of the annual # 1, should consider whether it reduction of salary or meeting fee expenditures for Board review (see above). would be appropriate to implement members, while recognizing the amount of time spent by a reduction of salary and meeting Board members in service to the District community (an fee expenditures to bring them in average of 24 scheduled Board meetings and as many as line with other special districts. 48 Committee meetings in the course of a year), the size of the District, and in comparison with other agencies. N:WDMINSUP\ADMIN \DIST- SEC\ BOARD \COMPENSATION- STI PENMAN N UAL REVIEW OF BOARD COMPENSATION\2013 \PP- Attachment B Grand Jury.doc- 1 -